The Sensex ended at life-time high on Wednesday backed by strong FII inflows in this calendar year.
Technically, we may see some more upside in the near term and the Sensex has given a buy signal on the weekly Fibonacci charts.
The Sensex has also given a buy signal on the yearly charts, as the index has now crossed the yearly R1 – resistance level. The bias for the rest of the year is likely to remain positive as long as the index sustains above 20,350-odd levels.
The BSE index is likely to trade with a positive bias as long as the Sensex sustains above 20,850-odd levels for the rest of the week.
On the upside, the Sensex can now rally to the yearly R2 at 21,550-odd levels.
As per the daily Fibonacci charts, the Sensex may seek support around 20,975-20,960-20,940, while face resistance around 21,090-21,110-21,125.
The NSE Nifty is likely to extend gains as select momentum oscillators like the MACD and Stochastic Slow have given a positive divergence on the daily charts.
The near term bias for the NSE index is likely to remain positive as long as the index sustains above 6,180-odd levels.
On the upside, the Nifty can surge to 6,330-odd levels.
Today, the Nifty may seek support around 6,235-6,230-6,220, while face resistance around 6,260-6,275-6,280.
Disclaimer: The author has no financial interest in any of the financial instruments mentioned above.